Brocker.Org: Cramer: Wal-Mart won’t let this Amazon-Whole Foods deal go unanswered

0
19

Amazon‘s plan to acquire Whole Foods for $13.7 billion is a “shot at the bowels of Wal-Mart,” CNBC’s Jim Cramer said Monday.

Cramer spoke said three days after Whole Foods’ shares rocketed after Amazon’s announcement that it plans to acquire the grocery store chain for $42 a share.

Shares of large food retailers like Kroger, Supervalu and Costco took a beating immediately after the news. Discount chains Target and Wal-Mart also fell.

With Whole Foods shares trading around Amazon’s offer price, investors appear to be speculating that another suitor could make a play for the grocery chain. Cramer said he wouldn’t be surprised if Wal-Mart tried to outbid Amazon.

“This is like when Wal-Mart destroyed all the mom and pop stores,” Cramer said on “Squawk on the Street.” “Wal-Mart became the biggest grocer in the country. … I don’t know how Wal-Mart can come back other than a bid much higher for Whole Foods.”

“Wal-Mart needs this bad,” he added.

Cramer also said he is amazed that Whole Foods CEO John Mackey, who will remain chief executive of the grocer after the deal closes, sold the company for so little. Cramer said the deal is an “earthquake.”

“I cannot believe they sold this thing for this little money,” he said. “It makes the most money per square foot of any retailer in America.”

Also read: Cramer says Amazon will ‘dominate food within the next two years’ with Whole Foods deal

— CNBC’s Sarah Whitten contributed to this report.

LEAVE A REPLY

*